We've had an economic boom of investment in AI, manufacturing and infrastructure over the past 18 months. Secular trends like electrification, AI, a space based economy are real. Valuations for companies involved in equipment investment for new technology buildout are stretched. Who will be tomorrow's winners? We've had an economic boom in the US over the past 18 months. The [...]
The S&P 500 is up 4.8% in the 2nd quarter to date but that is far from the whole story. The bull market over the last year has become ever narrower with the index return pulling away from the average return. This quarter the average return of the stocks in the index is actually negative, down 2.4%. Over the last [...]
The S&P 500 reached a milestone recently. Or at least I think so. The technology sector, as of this week, is now 33.6% of the index. If you count the Communications sector as technology - and you should since 49% of the sector is Meta and Google - the allocation to technology oriented companies is 42.8%. The top 3 companies [...]
When people talk about "the market" they are usually referring the big indexes - the S&P 500 or the NASDAQ. For more casual observers, "the market" is the Dow which is a lousy index for a lot of reasons but has the advantage of history. But are any those really representative of how "the market" is doing? Not really. All [...]
"The uncertainty about where neutral is today creates a challenge for policymakers." - Neel Kashkari, Minneapolis Federal Reserve President Last week was a volatile one for markets with big swings in stocks and bonds in a holiday-shortened week. The economic data didn't appear to be sufficiently out of the expected range to justify big moves but we got them anyway. [...]
A recent poll conducted by Harris and the UK news outlet The Guardian, produced some interesting results. Of those polled: 56% believe the US economy is in recession 49% believe the S&P 500 is down for the year 49% believe the unemployment rate is at a 50-year high 72% think inflation is increasing The reporting on this has been mostly [...]
There were two important inflation reports last week. One of them, the Producer Price Index, focuses on wholesale prices and it showed inflation hotter than expected in April. The year-over-year change bottomed in June of last year at just 0.3% and has been rising steadily since then. It now stands at 2.2%. The market reaction to this report was - [...]
Special Note: Back in late March, I highlighted a charitable organization - Our Grounds - that I had had a very positive interaction with and asked that you consider donating. I also asked readers to send me recommendations for other charities they supported and today I am pleased to feature Sugar Plum Bakery in Virginia Beach, VA, recommended by Alhambra [...]
Coming into last week's FOMC meeting, Jerome Powell was expected to be hawkish. I know that because numerous articles in the financial press told me so which makes me wonder if the articles themselves affected those expectations. Maybe. Bloomberg is now producing a Fed Sentiment index that is powered by a natural language processing algorithm trained on more than 60,000 [...]
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